The UK Financial Conduct Authority (FCA) has announced plans to allow retail consumers access to cryptocurrency exchange-traded notes (cETNs). This development comes as part of the regulator’s ongoing efforts to create a comprehensive framework for cryptocurrency regulation.
The cETNs that retail consumers can invest in will be required to be listed on a UK-based investment exchange that is approved by the FCA—specifically, one recognized as a Recognised Investment Exchange (RIE). Additionally, the FCA will implement financial promotion rules to ensure that consumers receive accurate information and are not enticed by inappropriate investment incentives.
Moreover, the Consumer Duty will be applicable to firms offering these cETNs to retail investors. However, it is crucial to note that these products will not be covered by the Financial Services Compensation Scheme (FSCS). Potential investors are advised to thoroughly comprehend the risks involved before deciding to invest in these financial instruments.
This announcement marks another significant step as the FCA continues to evaluate and refine its regulatory stance on the burgeoning cryptocurrency market. The authority has maintained a prohibition on retail access to cryptocurrency derivatives, insisting that it will keep monitoring market developments and reassessing its regulations regarding high-risk investments as necessary.
The new access rules for cETNs are set to take effect on 8 October 2025. The FCA’s recent policy shift follows its earlier ban introduced in January 2021, which prohibited the sale, marketing, and distribution of derivatives and ETNs linked to unregulated transferable cryptoassets for retail clients.
In June 2025, the FCA initiated a consultation process regarding potential changes to the ban on retail access to cETNs, indicating an evolving understanding of the risks and opportunities within the cryptocurrency domain.
This regulatory change aims to provide a safer environment for retail investors who seek to engage with cryptocurrencies by ensuring they are adequately informed while promoting responsible investment practices.